What can you do with damaged cash in Canada?

May 23, 2019 Doreen So Estate & Trust, Executors and Trustees, General Interest, Uncategorized Tags: , , , , , 0 Comments

I noticed a rip in a twenty dollar bank note in my wallet the other day. I was struck by the rip because Canadian bank notes are now made with a polymer that is meant to last longer than paper bank notes.  The idea that money can be accidentally damaged is a potential issue for estate trustees who are charged with the responsibility of gathering and preserving the assets of an estate until it’s distributed to the beneficiaries.

Luckily enough, The Bank of Canada has a policy on contaminated or mutilated bank notes.  Under certain circumstances, The Bank of Canada will redeem bank notes that have become contaminated or mutilated beyond normal wear and tear and issue the claimant with replacement bank notes.  The Bank of Canada will carefully scrutinize each note and the circumstances of each claim in order to determine whether the claim is legitimate.

 

 

According to The Bank of Canada, a claim will be rejected if it is their opinion that:

  • the identity of the claimant cannot be substantiated;
  • the notes are counterfeit or there are reasons to believe that the notes were acquired or are connected to money laundering or other criminal acts;
  • there has been an attempt to defraud the Bank or there exists contradictory or improbable explanations about significant aspects of the claim, such as how the notes were damaged or how they came into possession of the claimant;
  • any of the security features of the notes have been removed or altered or where the notes have otherwise been altered or damaged deliberately or in a systematic fashion, including dyed or chemically washed or treated, by a process that could be reasonably expected to have the effect of altering them.

While this particular problem might seem unlikely to occur, our blog has covered past instances where cash was found to have been destroyed.  There is also a very thorough wikiHow on how to replace damaged currency in the U.S. with some practical tips for worldwide application, such as tips on how to package and deliver the damaged currency to the appropriate authorities.

Thanks for reading!

Doreen So

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